Tesla Inc. is offering US consumers $7,500 to take delivery of its two highest-volume models before year-end, adding to indications the carmaker is struggling with demand.
The discount on new Model 3 sedans and Model Y sport utility vehicles is double what the company was offering earlier this month. It mirrors an anticipated change in how much of a tax credit certain consumers will be eligible for early next year.
It’s highly unusual for Tesla to offer such perks, as Elon Musk has for years enforced a no-discounts policy. The company also departed from its chief executive officer’s insistence against spending on traditional advertising last month by promoting its wares on a local television shopping channel in China. Tesla also has cut prices and production in that market this quarter.
Elon Musk’s infallibility is quickly eroding, evidenced by his ham-fisted management of Twitter. There is even talk some buyers are cancelling orders because of this negative coverage. Not many people want to be associated with a personality vilified by all but those on the fringe of public opinion. As if that is not enough, the continued spread of COVID in China will take a toll on demand for Tesla’s vehicles.Click HERE to subscribe to Fuller Treacy Money Back to top